Deb burden, losses force NOC to keep fuel prices high

The Himalayan Times
The Nepal Oil Corporation (NOC) has decided not to lower the prices in the domestic market citing huge losses and outstanding dues to the Indian Oil Corporation (IOC).
The state-owned company owes Rs 33.60 billion to IOC for fuel purchases.
As a result, oil prices in the domestic market continue to remain high despite its fall in the international market. Consumers have complained against NOC for hiking prices immediately when it increases in the international market but showing no efforts in lowering it when prices fall globally.
As per the revised list of fuel prices sent by the IOC on October 16, the NOC is heading to make a profit of Rs 390 million in the second half of the month.

 As per the list, the IOC has increased the price of petrol by Rs 1.75 per litre, Rs 15.30 for diesel per litre, and Rs 10.25 for aviation fuel per litre. NOC is incurring huge losses in diesel and LPG sales while making some profit through petrol and aviation fuel sales.
The consumption of diesel is around twice that of petrol in the country. A total of 56,000 kilolitres of petrol and 91,000 kilolitres of diesel were sold within the country from mid-July to mid-September, while 59,000 kilolitres of petrol and 82,638 kilolitres of diesel were sold from mid-September to mid-October, according to NOC.
According to Binitmani Upadhyay, spokesperson for the NOC, the estimated total loss in diesel sales amounts to Rs 180.51 million and Rs 370.60 million in LPG sales in the second half of October.